3 Incredible Dividend Stocks to Buy Now and Hold Forever

Some companies simply have a knack for rewarding their shareholders. They pay above-average-yielding dividends that grow each year.

Enterprise Products Partners (NYSE: EPD), NextEra Energy (NYSE: NEE), and Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP) stand out to three Fool.com contributors for their incredible ability to pay dividends. Here’s why they think these are great dividend stocks to buy right now and hold for a potential lifetime of income.

Enterprise owns necessary midstream assets

Reuben Gregg Brewer (Enterprise Products Partners): According to the Energy Information Administration (EIA) and the International Energy Agency (IEA), two of the most important monitors of the energy industry, demand for natural gas and oil will remain robust until at least 2050. That’s as far as their current projections go, and they include a rapid increase in the demand for clean energy. Simply put, energy transitions take a very long time, and for the next quarter of a century or so, oil and natural gas will still be vital to the world economy. It seems highly unlikely that demand for oil and gas will fall off a cliff after 2050.

This is the backdrop that supports North American midstream giant Enterprise Products Partners’ ability to keep paying distributions to unitholders. Currently, the yield is an attractive 7.6%. That’s backed by an investment grade-rated balance sheet, 25 years of annual distribution increases, and distributable cash flow that covered the distribution by 1.7 times in 2023. It is in rock-solid shape.

But the biggest thing to like about Enterprise is its portfolio of vital energy infrastructure, which includes energy pipelines, storage, transportation, and processing assets. It charges fees for the use of these assets, which help to move oil and natural gas around the world. As long as the world still needs oil and natural gas, the world still needs Enterprise. And that means hefty distributions for years to come.

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